How to Launch a Successful Cryptocurrency Exchange Business?

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Thinking about how to launch a successful cryptocurrency exchange business? Navigating the complex world of blockchain technology, crypto market liquidity, and regulatory hurdles can feel overwhelming. Are you ready to tackle these challenges and build a platform that stands out?

What does it take to create a secure, user-friendly cryptocurrency trading platform that attracts and retains users? Discover key steps and best practices, including Cryptocurrency Exchange Business Plan Template, to turn your crypto exchange startup into a thriving digital currency exchange.

How to Launch a Successful Cryptocurrency Exchange Business?
# Step Name Description
1 Define Your Cryptocurrency Exchange Concept and Business Plan Identify your target market, analyze competitors, select key features, and create a detailed 3–5 year business plan with a clear USP.
2 Secure Capital and Budget Startup Costs Estimate costs between $300,000–$1 million, prepare a strong pitch deck, and allocate funds for technology, compliance, and marketing.
3 Obtain Necessary Licenses and Legal Compliance Register as an MSB, apply for Money Transmitter Licenses, draft AML/KYC policies, and consult legal experts on regulatory obligations.
4 Develop and Secure the Technology Platform Choose a platform type, implement strong security measures, conduct audits, and set up scalable infrastructure with real-time monitoring.
5 Build Your Team and Establish Operations Hire key personnel, develop workflows, train staff on compliance, and establish 24/7 customer support and internal procedures.
6 Launch Marketing and User Acquisition Campaigns Implement multi-channel marketing, offer incentives, produce educational content, gather user feedback, and optimize campaigns for ROI.
7 Go Live and Manage Ongoing Compliance and Growth Conduct a soft launch, monitor trading activity, update compliance policies, expand features, and regularly review financial performance.



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Key Takeaways

  • Thorough market analysis and a clear target audience are essential to differentiate your cryptocurrency exchange in a crowded market.
  • Securing the right licenses and implementing strong compliance programs are critical to navigate complex US regulations and build trust.
  • Robust technology infrastructure with top-tier security and scalability is vital to protect assets and support growth.
  • A detailed business plan paired with strategic marketing and operational excellence lays the foundation for long-term profitability and success.



What Are Key Factors To Consider Before Starting Cryptocurrency Exchange?

Launching a cryptocurrency exchange demands careful planning and understanding of the market dynamics. With the US crypto market valued at over $50 billion in 2023 and expected to grow annually by 12% through 2028, your crypto exchange startup must be strategically positioned. Knowing your target users and regulatory landscape is crucial to building a successful digital currency exchange like CryptoHarbor.


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Key Considerations Before Launching Your Crypto Exchange


  • Identify your target market—retail traders, institutional investors, or crypto beginners—and tailor your platform’s features accordingly.
  • Define your unique value proposition, such as offering educational resources, low fees, or advanced trading tools to stand out among 600+ US-based exchanges.
  • Prepare for startup costs, typically ranging from $300,000 to $1 million, covering technology, legal, and compliance expenses.
  • Understand and comply with cryptocurrency regulations, including SEC, FinCEN, and state money transmitter licenses, to ensure legal operation.


Choosing the Right Business Model and Technology

Decide whether your platform will focus on spot trading, derivatives, fiat-to-crypto conversions, or peer-to-peer exchanges. This choice impacts your technology stack and liquidity needs. Prioritize building a scalable, secure infrastructure with robust cryptocurrency wallet integration and exchange security measures to protect user assets and data.

Integrating Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols is non-negotiable for compliance and trust. For insights on profitability and owner earnings in this space, check out How Much Do Owners Earn from Cryptocurrency Exchanges?



What Are Biggest Challenges Of Running Cryptocurrency Exchange?

Launching a crypto exchange startup like CryptoHarbor means facing intense challenges that can make or break your business. From safeguarding assets against cyber threats to navigating the maze of cryptocurrency regulations, each hurdle demands strategic focus. Understanding these risks upfront is critical to building a secure and trusted cryptocurrency trading platform that users rely on daily.


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Key Challenges to Address


  • Managing cybersecurity risks: Over $3.8 billion in crypto was stolen globally in 2022 due to hacks, making robust exchange security measures essential.
  • Navigating evolving US regulations: Compliance with SEC, CFTC, and state laws requires continuous adaptation and legal expertise.
  • Building trust and reputation: With 46% of US adults citing security as their top concern, transparent operations and clear communication are vital.
  • Ensuring liquidity: Competing with top exchanges maintaining daily trading volumes above $100 million demands strong partnerships and market-making strategies.

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Operational and Competitive Hurdles


  • Handling customer support: Users expect 24/7 availability for dispute resolution and assistance on your cryptocurrency wallet integration and trading issues.
  • Competing with established exchanges: Coinbase and Kraken hold over 50% of the US market share, setting a high bar for new entrants.
  • Managing operational costs: Compliance, technology, and user acquisition can exceed $100,000 per month for mid-sized platforms.
  • Learn more about key performance indicators to track your crypto exchange’s success in What Are the 5 Key Metrics for a Cryptocurrency Exchange Business?


What Legal And Regulatory Steps Are Required To Open Cryptocurrency Exchange?

Launching a crypto exchange startup like CryptoHarbor demands strict adherence to legal and regulatory frameworks to ensure compliance and build trust. Navigating these requirements early protects your platform from costly penalties and operational disruptions. Understanding these steps will position you to launch a secure and compliant cryptocurrency trading platform that users can rely on.


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Essential Legal & Regulatory Steps for Your Crypto Exchange


  • Register as a Money Services Business (MSB) with FinCEN and secure state-specific Money Transmitter Licenses (MTLs), which typically cost between $50,000 and $300,000 per state.
  • Implement robust AML/KYC programs to comply with the Bank Secrecy Act, a critical step for integrating trust and security into your cryptocurrency wallet integration and trading operations.
  • Adhere to SEC and CFTC regulations if your platform offers securities or derivatives, ensuring your crypto exchange development aligns with federal oversight.
  • Draft comprehensive user agreements, privacy policies, and risk disclosures tailored to federal and state laws, safeguarding your exchange and its users.
  • Obtain cybersecurity insurance with premiums ranging from $10,000 to $50,000 annually to protect against breaches and financial losses.
  • Conduct annual independent security audits and penetration testing to maintain top-tier exchange security measures and protect crypto market liquidity.
  • Maintain meticulous record-keeping and reporting of all transactions per IRS guidance to ensure transparency and regulatory compliance.

For more insight into operational success and compliance, check out What Are the 5 Key Metrics for a Cryptocurrency Exchange Business?



How Do You Create Strong Cryptocurrency Exchange Business Plan?

Building a solid business plan for your Cryptocurrency Exchange is your first step toward launching a successful crypto trading platform. It requires clear vision, detailed financials, and a robust compliance strategy to stand out in a crowded market. Let’s break down the essential elements that will set CryptoHarbor apart and attract investors and users alike.


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Key Components of a Winning Crypto Exchange Plan


  • Vision & Competitive Edge: Define CryptoHarbor’s mission to empower safe, accessible trading with educational resources and top-tier security, highlighting your unique position in a saturated digital currency exchange market.
  • Product Features: Detail essential offerings like fiat on/off ramps, multi-currency support, cryptocurrency wallet integration, staking, and margin trading to meet diverse user needs.
  • Financial Model: Include 3–5 year projections, break-even analysis, and customer acquisition cost (CAC), noting that industry averages range between $200–$400. Reference What Are the 5 Key Metrics for a Cryptocurrency Exchange Business? for deeper insight.
  • Compliance & Risk Management: Map out how you’ll integrate KYC and AML procedures, navigate cryptocurrency regulations, and implement exchange security measures to protect users and meet legal requirements.
  • Marketing Strategy: Plan partnerships, influencer campaigns, and referral incentives, allocating up to 30% of your budget as leading exchanges do to boost crypto market liquidity and user acquisition.
  • Technology Development: Decide between in-house development or white-label platforms, choosing the right blockchain technology and technology stack needed to build a secure, scalable crypto exchange platform.
  • Founding Team: Showcase the experience and credentials of your team to build investor confidence and demonstrate your capability to execute the crypto exchange startup successfully.




How Do You Ensure Profitability In Cryptocurrency Exchange Business?

Profitability is the cornerstone of launching a successful cryptocurrency exchange like CryptoHarbor. To thrive in this competitive market, you must balance competitive fees, diverse revenue streams, and operational efficiency. Keep reading to discover proven strategies that will help you build a sustainable and profitable crypto exchange startup.


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Key Profitability Drivers for Your Crypto Exchange


  • Set competitive trading fees between 0.1% and 1.5% per transaction, aligning with US exchange averages to attract volume.
  • Diversify revenue streams with listing fees, withdrawal charges, premium accounts, and lending services to boost income beyond trading fees.
  • Reduce operational costs by adopting automation and cloud infrastructure, which can cut expenses by 20–30% compared to traditional systems.
  • Grow your user base and trading volume—top US exchanges boast over 500,000 active users, driving liquidity and profitability.
  • Implement robust anti-fraud and risk controls to minimize financial losses and protect your platform’s reputation.
  • Retain customers through loyalty programs, staking rewards, and educational content that enhance user engagement and trust.
  • Monitor and optimize marketing ROI by tracking cost per acquisition and customer lifetime value to ensure efficient growth spending.

For a deeper understanding of performance benchmarks, check out What Are the 5 Key Metrics for a Cryptocurrency Exchange Business? to guide your strategy and measure success effectively.



What Are 7 Steps To Open Cryptocurrency Exchange?



KPI 1: Define Your Cryptocurrency Exchange Concept and Business Plan

How do you ensure your cryptocurrency exchange stands out in a crowded market? Defining a clear concept and crafting a detailed business plan is the foundation that determines your crypto exchange startup’s long-term success. This step shapes your strategic direction, highlights market opportunities, and mitigates risks by aligning your vision with market realities.

To execute this effectively, start by pinpointing your target audience—whether retail traders, institutional investors, or niche segments—and conduct a thorough competitor analysis to spot gaps. Then, select core features that resonate with user needs and build a robust 3–5 year financial plan outlining revenue streams, costs, and growth. Establishing a unique selling proposition (USP) will differentiate your exchange in the competitive crypto trading platform landscape.

Concept Definition & Planning

Defining your cryptocurrency exchange concept involves identifying the exact market segment you want to serve and analyzing competitors to uncover unmet needs. This clarity guides your feature selection, such as fiat support or educational resources, ensuring alignment with user demands and regulatory requirements.

A comprehensive business plan with detailed 3–5 year financial projections is critical. It should include revenue models, cost structures, and growth strategies that reflect the evolving crypto market landscape and regulatory environment. Your USP should clearly articulate how CryptoHarbor’s secure, user-friendly platform with educational support stands apart.

Breaking Down the Step


  • Identify your target audience: retail traders, institutional clients, or niche crypto enthusiasts.
  • Analyze competitor offerings to find market gaps and opportunities for differentiation.
  • Select core features such as fiat currency integration, mobile trading, and educational content.
  • Develop a detailed business plan with 3–5 year financial projections and a clear USP.
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Key Elements of Your Cryptocurrency Exchange Business Plan


Element Description Impact
Target Market Identification Define whether your focus is retail users, institutions, or specialized niches. Ensures tailored marketing and product development, improving user acquisition.
Competitor Analysis Research top exchanges and identify unmet needs or weaknesses. Helps position your exchange uniquely and exploit market gaps.
Core Feature Selection Decide on essential features: fiat support, mobile app, educational tools. Enhances user experience and retention, critical for growth.
Financial Projections Forecast revenues, costs, and cash flow over 3–5 years. Supports fundraising and strategic decision-making.
Unique Selling Proposition (USP) Define what makes CryptoHarbor stand out, e.g., security and education. Drives brand differentiation and user trust in a competitive market.
Growth Strategy Outline marketing, partnerships, and feature expansion plans. Ensures scalable and sustainable business development.


KPI 2: Secure Capital and Budget Startup Costs


How much capital do you need to launch a successful cryptocurrency exchange? Securing sufficient funding and budgeting accurately are critical because the crypto exchange startup landscape demands significant investment in technology, compliance, and security. Underestimating these costs can stall your launch or jeopardize long-term operations amid evolving cryptocurrency regulations and market volatility.

To execute this step effectively, start by estimating your total startup costs, typically ranging from $300,000 to $1 million. Prepare a compelling investor pitch deck that clearly outlines your financial projections and market opportunity. Allocate your budget strategically across development, legal compliance, marketing, and build a reserve fund for unexpected expenses, especially related to regulatory changes or security enhancements.

Estimate and Allocate Startup Capital

Estimating startup costs for your cryptocurrency exchange involves accounting for platform development, legal fees, compliance measures, and marketing campaigns. This step sets the financial foundation, ensuring you have resources to cover technology infrastructure, integrate cryptocurrency wallets, and implement robust exchange security measures.

Allocating your budget wisely means prioritizing regulatory compliance and security, which are non-negotiable in the crypto trading platform space. Additionally, marketing efforts to attract users and liquidity should be factored in early to gain traction post-launch.

Breaking Down the Step


  • Estimate total startup costs between $300,000 and $1 million, covering development, legal, and compliance.
  • Explore diverse funding sources such as angel investors, venture capital, and crowdfunding platforms.
  • Prepare a clear, data-driven investor pitch deck highlighting market opportunity and financial projections.
  • Allocate budget for regulatory compliance, technology infrastructure, marketing, and build a contingency reserve fund.
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Startup Capital and Budget Breakdown for CryptoHarbor


Expense Category Estimated Cost Range Notes
Platform Development & Security $150,000 – $500,000 Includes blockchain integration, wallet setup, and security audits
Legal & Compliance $50,000 – $200,000 Licensing, AML/KYC policy drafting, and ongoing regulatory consulting
Marketing & User Acquisition $50,000 – $200,000 Multi-channel campaigns, educational content, and incentives
Reserve Fund $50,000 – $100,000 For unexpected compliance or security costs
Total Estimated Startup Cost $300,000 – $1,000,000 Based on industry benchmarks and CryptoHarbor’s scope


KPI 3: Obtain Necessary Licenses and Legal Compliance


Have you considered how regulatory compliance can make or break your crypto exchange startup? Securing the right licenses and adhering to legal standards is not just a formality—it’s the foundation of trust and longevity in the cryptocurrency trading platform space. Without this step, CryptoHarbor risks costly fines, operational shutdowns, or loss of user confidence.

To navigate this complex landscape, you need a clear roadmap for obtaining licenses, drafting AML/KYC policies, and consulting legal experts. This ensures your cryptocurrency exchange operates within the US regulatory framework, protecting your business and users alike.

Licensing and Compliance Essentials

Registering as a Money Services Business (MSB) with FinCEN is your first legal hurdle, establishing your crypto exchange as a legitimate financial entity. Next, applying for state-specific Money Transmitter Licenses is critical, though expect an average approval time of 6–12 months, so plan accordingly. Drafting robust AML (Anti-Money Laundering) and KYC (Know Your Customer) policies is mandatory to prevent fraud and meet federal standards.

Consulting specialized legal counsel is vital to understand obligations under the SEC, CFTC, and IRS, each governing different aspects of cryptocurrency regulations. Finally, securing comprehensive business insurance and cybersecurity coverage safeguards your exchange from operational risks and cyber threats, reinforcing user trust and compliance integrity.

Breaking Down the Step


  • Register CryptoHarbor as an MSB with FinCEN to comply with federal financial regulations.
  • Apply for Money Transmitter Licenses in all states where you plan to operate, anticipating a 6–12 month approval timeline.
  • Develop detailed AML and KYC policies to detect and prevent illicit activities on your platform.
  • Engage legal experts to clarify your exchange’s responsibilities under SEC, CFTC, and IRS rules.
  • Obtain business insurance and cybersecurity coverage to mitigate financial and security risks.
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Compliance Checklist for CryptoHarbor


Compliance Area Key Actions Typical Timeline
MSB Registration File registration with FinCEN to legally operate as a money services business 1–3 months
Money Transmitter Licenses Apply in each state; manage multi-state regulatory requirements 6–12 months
AML/KYC Policy Development Draft and implement policies aligned with federal standards 1–2 months
Legal Consultation Review obligations under SEC, CFTC, IRS regulations Ongoing
Insurance & Cybersecurity Secure coverage to protect against operational and cyber risks 1 month


KPI 4: Develop and Secure the Technology Platform


How do you ensure your cryptocurrency exchange stands out in a market where security breaches can cost millions and destroy trust overnight? Developing and securing the technology platform is the backbone of any crypto exchange startup, directly impacting user confidence, regulatory compliance, and operational uptime.

This step demands a clear strategy: deciding between building a custom platform or adopting a white-label solution, implementing industry-leading security measures, and preparing for scalability. Executing these actions effectively requires a mix of technical expertise, rigorous testing, and proactive infrastructure management.

Platform Development and Security

Choosing the right technology platform involves weighing custom development against white-label crypto exchange solutions. Custom builds offer tailored features but require significant time and capital, while white-label options accelerate launch with pre-built infrastructure. Security is paramount: integrating two-factor authentication (2FA), cold wallets for asset storage, and DDoS protection forms the first line of defense.

Beyond initial setup, conducting third-party security audits and penetration testing uncovers vulnerabilities before attackers do. Establishing scalable cloud infrastructure ensures 99.9% uptime, critical for real-time cryptocurrency trading. Implementing continuous monitoring and incident response protocols helps detect and mitigate threats instantly, safeguarding both assets and reputation.

Breaking Down the Step


  • Decide between custom platform development or white-label crypto exchange solutions based on budget and timeline.
  • Integrate robust security features: 2FA, cold storage wallets, and DDoS protection to defend against cyberattacks.
  • Engage third-party experts for security audits and penetration testing to identify and fix vulnerabilities.
  • Deploy scalable cloud infrastructure with real-time monitoring and incident response to maintain high availability and fast threat mitigation.
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Technology Platform Development and Security Checklist


Key Action Description Impact
Platform Choice Custom build vs. white-label solutions Controls time to market and customization level
Security Integrations 2FA, cold wallet storage, DDoS protection Prevents unauthorized access and asset theft
Security Audits Third-party penetration testing and vulnerability assessments Identifies and mitigates security risks before launch
Infrastructure Setup Cloud-based, scalable hosting with 99.9% uptime Ensures platform reliability and handles peak loads
Monitoring & Response Real-time system monitoring and incident response protocols Enables rapid detection and resolution of security incidents


KPI 5: Build Your Team and Establish Operations


How do you assemble a team that transforms your cryptocurrency exchange vision into reality? Building the right team and establishing efficient operations is critical to launching a successful crypto exchange business. This step directly impacts your platform’s security, regulatory compliance, and customer satisfaction—key pillars for long-term success. Without experienced personnel and streamlined workflows, you risk operational delays, compliance failures, and poor user experiences.

To execute this step effectively, focus on hiring specialized roles such as compliance officers, blockchain engineers, and customer support staff. Develop clear operational workflows for onboarding, trading, and withdrawals to ensure smooth daily activities. Training your team on AML/KYC regulations and customer service best practices will safeguard your exchange and enhance user trust. Finally, implement 24/7 support channels and internal escalation procedures to handle issues promptly and maintain platform reliability.

Team Building and Operational Setup

Hiring the right talent is foundational for your crypto exchange startup. Compliance officers ensure adherence to cryptocurrency regulations and AML/KYC policies, reducing legal risks. Engineers develop and maintain the trading platform, integrating blockchain technology and wallet security measures. Customer support staff handle inquiries and resolve issues, vital for user retention and trust.

Operational workflows define how users onboard, trade, and withdraw funds, minimizing errors and delays. Training programs keep staff updated on regulatory changes and customer service standards. Establishing 24/7 support and clear escalation paths ensures rapid response to technical or compliance incidents, maintaining exchange uptime and reputation.

Breaking Down the Step


  • Hire compliance officers, engineers, and customer support staff with crypto industry experience.
  • Develop detailed workflows for onboarding users, executing trades, and processing withdrawals.
  • Train staff thoroughly on AML/KYC protocols and customer support best practices.
  • Set up 24/7 customer support channels and create internal documentation with escalation procedures.
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Key Operational Metrics to Track for Team and Operations


Metric Description Target/Benchmark
Compliance Incident Rate Number of AML/KYC compliance breaches per month Less than 1% of total transactions
Customer Support Response Time Average time to respond to user inquiries Under 5 minutes for initial contact
Onboarding Completion Rate Percentage of users successfully completing KYC and account setup Above 90%
Operational Uptime Percentage of time the trading platform is fully operational Greater than 99.9%


KPI 6: Launch Marketing and User Acquisition Campaigns


How do you attract your first users to a new cryptocurrency exchange in a highly competitive market? Launch marketing and user acquisition campaigns are critical because they directly impact your platform’s initial traction and long-term growth potential. Without a well-executed strategy, even the most secure and user-friendly crypto exchange can struggle to gain visibility and trust.

To succeed, you need a multi-channel marketing approach that combines targeted outreach, incentives, and education. This step involves not only attracting users but also engaging them meaningfully through content and feedback loops to refine your offering and maximize your marketing ROI.

Multi-Channel Marketing Strategy

Developing a multi-channel marketing strategy is essential for launching a cryptocurrency exchange like CryptoHarbor. This includes leveraging SEO to improve organic search rankings, engaging users on social media platforms where crypto communities thrive, and partnering with influencers who can amplify your brand credibility. Each channel plays a distinct role in driving awareness and user acquisition.

Complement these efforts by offering referral and sign-up bonuses, which have proven effective in the crypto industry to rapidly scale user bases. Educational content such as webinars and tutorials builds trust and lowers the entry barrier for new traders, positioning your exchange as a reliable platform in a market where 70% of new crypto users seek guidance.

Breaking Down the Step


  • Implement SEO strategies focused on keywords like “cryptocurrency exchange” and “crypto exchange startup” to capture organic traffic.
  • Engage crypto influencers and community leaders to build credibility and reach niche audiences effectively.
  • Offer referral programs and sign-up bonuses; studies show referral incentives can increase user acquisition rates by up to 30%.
  • Host educational webinars and publish content addressing crypto trading, security measures, and blockchain technology to build trust and reduce user hesitation.
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Key Metrics to Track User Acquisition Success


Metric Description Target Range
Customer Acquisition Cost (CAC) Average marketing spend required to acquire one active user $50–$150 depending on channel efficiency
Conversion Rate Percentage of website visitors who sign up and complete KYC 10–20% for optimized crypto platforms
Referral Program Participation Percentage of new users acquired through referrals 25–40% in early launch phases
User Retention Rate Percentage of users trading actively after 30 days 60–75% with strong educational support


KPI 7: Go Live and Manage Ongoing Compliance and Growth


Ready to launch your cryptocurrency exchange but wondering how to ensure a smooth start and sustained growth? This step is critical because a soft launch lets you identify system glitches and user experience issues before a full-scale rollout, reducing costly errors and reputational risks. Managing compliance and growth continuously secures your platform’s long-term viability amid evolving cryptocurrency regulations and market dynamics.

Executing this phase effectively means closely monitoring daily trading volumes, user activity, and regulatory updates. You’ll need to dynamically update AML/KYC policies and expand your platform’s features to meet market demand while regularly reviewing financial performance to adjust your growth strategy.

Initial Launch and Compliance Management

Begin with a soft launch to test CryptoHarbor’s systems and gather real user feedback, allowing you to fix bugs and optimize the user interface. This controlled rollout helps you validate your technology stack and customer support readiness without overwhelming your infrastructure.

Ongoing compliance is non-negotiable; regularly update AML and KYC policies to stay aligned with US cryptocurrency regulations, which can change rapidly. This proactive approach minimizes legal risks and builds trust with users and regulators.

Breaking Down the Step


  • Conduct a soft launch to identify and resolve technical and user experience issues early.
  • Monitor daily trading volume and user activity to track platform health and liquidity.
  • Continuously update AML/KYC policies to reflect the latest cryptocurrency regulations.
  • Expand features and integrate new cryptocurrencies based on user demand and market trends.
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Key Metrics to Track Post-Launch


Metric Why It Matters Target Benchmark
Daily Trading Volume Indicates liquidity and user engagement essential for a thriving crypto exchange. $1 million+ in early months is a strong sign of market traction.
User Activity Rate Measures platform usability and customer retention. 30%+ monthly active users to maintain healthy growth.
Compliance Updates Frequency Ensures adherence to evolving AML/KYC regulations, reducing legal risk. Review policies quarterly or after regulatory changes.
Feature Expansion Rate Reflects responsiveness to market demands and innovation pace. Introduce 2–3 new cryptocurrencies or features per quarter.
Financial Performance Review Guides strategic adjustments to optimize profitability and growth. Conduct monthly financial reviews with adjustments based on KPIs.